Full Lenght Article
Smart Technologies and Financial Performance: The mediating effect of corporate sustainability

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Open Access

Abstract

The World of Business and Industry began to transform from manual to digitizing, both large and small companies. Demands for the industrial revolution 4.0 Ask the business world to follow its development. Businesses or companies that cannot keep up with these developments will be crushed by the wheels of time. This study aims to investigate the effect of smart technology and three components of corporate sustainability (social sustainability, economic sustainability, environmental sustainability) on financial performance. This study also wants to investigate the mediating effect of corporate sustainability on financial performance. The sample in this study was SMEs engaged in food in East Java. The data analysis technique used in this study uses SEM-PLS. The results of this study indicate that smart technology shows a positive effect on financial performance and three components of corporate sustainability. The next finding is the third component of company sustainability which only supports positive economic sustainability on financial performance. The final finding in this study is that only economic sustainability can mediate smart technology on financial performance.

Keywords

smart technologies
corporate sustainability
financial performance

Declarations

Conflict of Interest Statement

The author (s) declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.

Bibliographic Information

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  • Submitted
    1 April 2021
  • Revised
    10 July 2021
  • Published
    4 January 2021